Phoenix Enterprise Reports Significant Growth In Annual & Quarter Periods

The content reviews the financial performance reports of the company for the recent annual and quarter period highlighting significant growth in most of the major financial indicators.

By Manuel EdumbaPublished 4 years ago • 3 min read

The short profile of the company:

Shanghai Phoenix Enterprise (Group) Co. Ltd. [900916:CH] previously known as Jinshan Development & Construction Co., Ltd.; is a Chinese based company that focuses mainly in the manufacturing, marketing and distribution of different kinds of bicycles and other related accessories. The company also engages in other business activities such as the production and marketing of electric cars, real estate rental and leasing business, hotel business, medical equipment business, investment management and consulting business and others. The company conducts its business activities within the Chinese domestic regions and overseas regions as well. The company was formed and incorporated in the year 1993 precisely in the month of December with its headquarter situating at Shanghai, China. The executive head of the company is Weizhong Zhou with up to about 1,032 other employees currently working for the company.

Previous annual financial performance reports:

The financial performance reports of the company for the past three years signify significant growth in most of the major financial indicators. According to the financial reports, the bicycle and spokes manufacturing and marketing businesses of the company generates huge revenue for the company. It experienced strong improvement in the production rate as a result of the increase in the manufacturing factories and sales outlets. The financial performance report of the company targeting the Fy20 period signifies a significant growth in most of the major financial indicators of the report. According to the financial data of the company targeting the Fy20 period, some of the major financial indicators performed as follows;

Sales revenue: The financial data of the company for the Fy20 period revealed that the total revenue generated from business significantly improved as it increased to CNY1.37 billion which represents an increment by 29.13% year-on-year when compared and analyzed from the CNY974.89 million that was reported in the Fy19’s financial result. Some of the factors that propelled the strong improvement in the revenue generated from business are (1) increase in the manufacturing factories which increased the production rate and (2) opening of more sales outlets in some of the cities and regions that were not covered before.

Gross profit: The financial report of the company targeting the period in quote signifies that the gross profit during that period amounted to about CNY203.20 million which represents an increment by 15.47% year-on-year when compared and analyzed from the CNY171.76 million that was reported in the Fy19’s financial result. One of the strong factors that limit the amount of profit reported by the company is the steady growth or stable expenses incurred during business activities.

Total debt: The financial result that was posted by reuters revealed significant growth as the total debt accumulated by the company amounted to about CNY171.33 million which represents an increment by 40.95% year-on-year when compared and analyzed from the CNY101.16 million that was reported in the Fy19’s financial result.

Recent quarterly financial reports on Fy20 periods:

From a look at the performance in 2020 so far, one can see that the company is improving in most of its major financial indicators within the first and second quarters of Fy20 period. The financial report shows that in 1Q21 period, the revenue generated from business amounted to about CNY540.33 million which represents an increment by 36.03% year-on-year when compared and analyzed from the CNY345.64 million that was reported in the Fy19’s financial result. The 2Q21’s financial result also showed that the total revenue generated from business amounted to about CNY636.92 million which represents an increment by 15.16% year-on-year when compared and analyzed from the CNY540.33 million that was reported in the Fy19’s financial result.

During the 2Q20 period, the company accumulated more debt of about CNY136.58 million which was used to improve the manufacturing department of the company.